Share Transfer in a Pvt. Ltd Company

In a Pvt. Ltd . Company with two directors both being owners in the ratio of 50% Each.

Can any Director transfer his share/ part share to any other person outside the company without taking approval of the other director in written.

Can a clause be inserted in the memorandum/article of assocaitarion...that neither of the Directors can transfer his or her share without the approval of the other Director.

What is the succession clause in respect of a pvtltd. company ?

Replies (2)
Quick Summary
This discussion clarifies the process of share transfer within a private limited company, particularly when directors are also equal shareholders. It addresses whether a director can transfer shares without the other director's written consent. The consensus is that shareholders generally cannot transfer shares in a private company without board approval, even if specific clauses aren't present in the Memorandum or Articles of Association.

1. without board approval shareholders cant transfer their shares in private company.

2. Even without such clause, Private Company cant do the same.

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